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Acuity Brands (AYI) Go-To-Market Channels to Aid Q4 Earnings

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Acuity Brands, Inc. AYI is slated to announce fourth-quarter fiscal 2021 results on Oct 6, before the opening bell.

In the last reported quarter, its adjusted earnings topped the Zacks Consensus Estimate by 23.1% and revenues beat the same by 6.7%. On a year-over-year basis, the top and bottom lines improved 15.9% and 42.8%, respectively.

Markedly, the company beat earnings expectations in the trailing five quarters.

Trend in Estimate Revision

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained stable at $2.89 over the past 60 days. The estimated figure indicates an increase of 23% from $2.35 per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $975.5 million, suggesting a 9.5% increase from the year-ago reported figure of $891.2 million.

Factors to Note

Acuity Brands’ fiscal fourth-quarter earnings are likely to have registered year-over-year growth owing to strength in go-to-market channels, product portfolio and robust improvement in the economy. Also, effective cost management and price increase across the portfolio might have added to the positives.

Acuity Brands Inc Price and EPS Surprise

Acuity Brands Inc Price and EPS Surprise
Acuity Brands Inc Price and EPS Surprise

Acuity Brands Inc price-eps-surprise | Acuity Brands Inc Quote

The company has been focusing on investment in product development. It introduced new lighting and controls products as well as improved and evolved certain parts of the product and solutions portfolio. These products use fewer inputs and are highly mobile. Some of the products are globally sourced, while others are manufactured in the company’s own facilities to mitigate supply chain complexity. These moves are likely to have contributed to fiscal fourth-quarter revenues.

However, net sales in the retail channel are likely to have softened, mainly due to inventory rebalancing carried out by one of its large customers. Also, Acuity Brands has been grappling with the rising cost of steel and aluminum, and increasing expenses of fuel and freight.

Nonetheless, the company expects gross margins of 42% for the fiscal fourth quarter.

What Our Model Indicates

Our proven model does not conclusively predict an earnings beat for Acuity Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, this is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Currently, the company has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With Favorable Combination

According to our model, here are some companies that have the right combination of elements to post an earnings beat in their respective quarters to be reported.

Williams-Sonoma, Inc. WSM has an Earnings ESP of +2.24% and sports a Zacks Rank #1.

Aspen Aerogels, Inc. ASPN has an Earnings ESP of +2.60% and holds a Zacks Rank #3.

ChampionX Corporation CHX has an Earnings ESP of +0.58% and a Zacks Rank #3.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

WilliamsSonoma, Inc. (WSM) : Free Stock Analysis Report

Acuity Brands Inc (AYI) : Free Stock Analysis Report

Aspen Aerogels, Inc. (ASPN) : Free Stock Analysis Report

ChampionX Corporation (CHX) : Free Stock Analysis Report

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